DWC Entrepreneurship - Mr. Filipinas

Wednesday, June 9, 2010

Tuesday, June 1, 2010

FINAL PROJECT - PRESENTATION

YOUR FINAL PROJECT IS TO CREATE A PRESENTATION FOR YOUR COMPANY, BELOW IS THE LINK FOR THE TEMPLATE I WANT YOU TO FOLLOW. IT WILL BE DUE WEDNESDAY JUNE 9TH, 2010.

HERE IS THE TEMPLATE:

http://dl.dropbox.com/u/5046837/Entrepreneurship/Entreprenuership%20Presentation%20Template.ppt

Tuesday, May 25, 2010

Determine your Expenses for Income Statement:

Determine how much your business is going to cost to run:

Estimating the costs of running a business:

http://www.papefinancial.com/info/startupcosts.htm

Enter your estimates into this spreadsheet and email me at mr.filipinas@gmail.com:

http://dl.dropbox.com/u/5046837/Entrepreneurship/Expenses%20Spreadsheet%20Template.xls

USAIRDO

Licenses: Department of Consumer Affairs - http://www.nyc.gov/html/dca/html/business/business.shtml

Utilities - Lights, electricity, Water, Internet

water: http://www.nyc.gov/html/dep/html/water_and_sewer_bills/index.shtml

Salaries - wages & salaries (first determine, How many days a week open? Which hours open?)

Advertising - sign websites, kinkos for posters or banners, etc.

Fedex Kinkos: http://www.fedex.com/us/office/

Insurance - insurance websites: GEICO, State Farm, Allstate

Business Insurance FAQ:

http://www.businessgrowthinsurance.com/faq.html

Business Insurance Quote Request:

https://quotes.4freequotes.com/quoterequest4fq.aspx?ty=bus&qid=7&zipcode=10468&sid=y1274883677t

Interest - How much money do you need to borrow from the bank? then ask me how to determine how much you will pay in interest

Rent - based on square footage

Depreciation - How much total equipment do you have?

Other -

Email mr.filipinas@gmail.com with the list with estimated costs for your company.

Monday, May 24, 2010

ZNM Realty - Diana, Oscar

Links:
http://www.princetonreview.com/Careers.aspx?cid=135

http://www.bls.gov/oco/ocos120.htm

http://www.ehow.com/facts_5300945_real-estate-agent-vs-broker.html

Situation being analysed: ZNM Zaro N Marrero Real estate ___________________________________________________

This SWOT example is for a new business opportunity. Many criteria can apply to more than one quadrant. Identify criteria appropriate to your own SWOT situation.

criteria examples

Advantages of proposition?
Capabilities?
Competitive advantages?
USP's (unique selling points)?
Resources, Assets, People?
Experience, knowledge, data?
Financial reserves, likely returns?
Marketing - reach, distribution, awareness?
Innovative aspects?
Location and geographical?
Price, value, quality?
Accreditations, qualifications, certifications?
Processes, systems, IT, communications?
Cultural, attitudinal, behavioural?
Management cover, succession?
Philosophy and values?

Strengths

-More advance technology and better houses do to the observations
-Internet use to sell houses
-Know local market
-Offer superior costumer service
Computerized Information systems
-Hire Certified technicians,
- Pay sales based on commission

Weaknesses

-We just started as a small company with no experience
-Relative small
-No name recognition
-Have no advantages in management, Marketing, and finance – higher costs due to lack of economies of scale.

criteria examples

Disadvantages of proposition?
Gaps in capabilities?
Lack of competitive strength?
Reputation, presence and reach?
Financials?
Own known vulnerabilities?
Timescales, deadlines and pressures?
Cashflow, start-up cash-drain?
Continuity, supply chain robustness?
Effects on core activities, distraction?
Reliability of data, plan predictability?
Morale, commitment, leadership?
Accreditations, etc?
Processes and systems, etc?
Management cover, succession?

criteria examples

Market developments?
Competitors' vulnerabilities?
Industry or lifestyle trends?
Technology development and innovation?
Global influences?
New markets, vertical, horizontal?
Niche target markets?
Geographical, export, import?
New USP's?
Tactics: eg, surprise, major contracts?
Business and product development?
Information and research?
Partnerships, agencies, distribution?
Volumes, production, economies?
Seasonal, weather, fashion influences?
Opportunities

-Better house observation
Advertise on billboards, TV local markets.
-Like the Internet to advertise
-Service to maintenance.
-Cash for clunkers-government incentives for selling houses.

Threats

-Other big companies
-Financial problems
-No recognition
- No territory
-At the mercy of interest rates
-Private sellers on EBAY, Craigslist, and other Internet websites

criteria examples

Political effects?
Legislative effects?
Environmental effects?
IT developments?
Competitor intentions - various?
Market demand?
New technologies, services, ideas?
Vital contracts and partners?
Sustaining internal capabilities?
Obstacles faced?
Insurmountable weaknesses?
Loss of key staff?
Sustainable financial backing?
Economy - home, abroad?
Seasonality, weather effects?

HOOVERS

http://www.hoovers.com/residential-real-estate-brokerage-and-management/--ID__400--/free-ind-fr-profile-basic.xhtml

http://www.hoovers.com/commercial-real-estate-brokerage-and-management/--ID__340--/free-ind-fr-profile-basic.xhtml

1 Century21
web: www.century21.com
URL:http://www.century21.com/

2 West Village Real estate
web: www.prudentialelliman.com/manhattan
URL:http://www.prudentialelliman.com/

3 Coldwell Banker(Residental Brokeage)
web: www.coldwellbankermoves.com
URL:http://www.coldwellbankermoves.com/real_estate/new_york/new_york.htm?WT.mc_ID=371110020104380&WT.srch=1

4 Corcoran(live who you are)
web: www.corcoran.com
URL:http://www.corcoran.com/

5 Halstead Property
web: www.halstead.com
URL:http://www.halstead.com/

THE INCOME STATEMENT

Income statement, also referred as profit and loss statement (P&L), earnings statement, operating statement or statement of operations,^[1] is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). It displays the revenues recognized for a specific period, and the cost andexpenses charged against these revenues, including write-offs (e.g., depreciation and amortization of various assets) and taxes.^[1] The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.

The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time.

Usefulness and limitations of income statement

Income statements should help investors and creditors determine the past financial performance of the enterprise, predict future performance, and assess the capability of generating future cash flows through report of the income and expenses.

However, information of an income statement has several limitations:

Items that might be relevant but cannot be reliably measured are not reported (e.g. brand recognition and loyalty).
Some numbers depend on accounting methods used (e.g. using FIFO or LIFO accounting to measure inventory level).
Some numbers depend on judgments and estimates (e.g. depreciation expense depends on estimated useful life and salvage value).

Items on income statement

[edit]Operating section

Revenue - Cash inflows or other enhancements of assets of an entity during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major operations. It is usually presented as sales minus sales discounts, returns, and allowances.
Expenses - Cash outflows or other using-up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.
- General and administrative expenses (G & A) - represent expenses to manage the business (officer salaries, legal and professional fees, utilities, insurance, depreciation of office building and equipment, office rents, office supplies)
- Selling expenses - represent expenses needed to sell products (e.g., sales salaries, commissions and travel expenses, advertising, freight, shipping, depreciation of sales store buildings and equipment)
- Selling General and Administrative expenses (SG&A or SGA) - consist of the combined payroll costs (salaries, commissions, and travel expenses of executives, sales people and employees), and advertising expenses a company incurs. SGA is usually understood as a major portion of non-production related costs, opposing production related costs such as raw material and (direct) labour
- R & D expenses - represent expenses included in research and development
- Depreciation - is the charge for a specific period (i.e. year, accounting period) with respect to fixed assets that have been capitalised on the balance sheet.

[edit]Non-operating section

Other revenues or gains - revenues and gains from other than primary business activities (e.g. rent, patents). It also includes unusual gains and losses that are either unusual or infrequent, but not both (e.g. sale of securities or fixed assets)
Other expenses or losses - expenses or losses not related to primary business operations.

[edit]Irregular items

They are reported separately because this way users can better predict future cash flows - irregular items most likely will not recur. These are reported net of taxes.

Discontinued operations is the most common type of irregular items. Shifting business location, stopping production temporarily, or changes due to technological improvement donot qualify as discontinued operations.
Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations. Note: natural disaster might not qualify depending on location (e.g. frost damage would not qualify in Canada but would in the tropics).
Changes in accounting principle is, for example, deciding to depreciate an investment property that has previously not been depreciated. However, changes in estimates (e.g. estimated useful life of a fixed asset) do not qualify.

[edit]Earnings per share

Because of its importance, earnings per share (EPS) are required to be disclosed on the face of the income statement. A company which reports any of the irregular items must also report EPS for these items either in the statement or in the notes.

$\text{Earnings per share} = \frac{\text{Net income} - \text{Preferred stock dividends}}{\text{Weighted average of common stock shares outstanding}}$

There are two forms of EPS reported:

Basic: in this case "weighted average of shares outstanding" includes only actual stocks outstanding.
Diluted: in this case "weighted average of shares outstanding" is calculated as if all stock options, warrants, convertible bonds, and other securities that could be transformed into shares are transformed. This increases the number of shares and so EPS decreases. Diluted EPS is considered to be a more reliable way to measure EPS.

24/7 Family Fitness and Fun STATEMENTS OF INCOME Revenues $12,580.2 $10,900.4 $8,290.3 Cost of sales 6,740.2 5,650.1 4,524.2 ------------------------------------------------------------------------------ Gross profit 6,835.0 5,657.3 3,270.1 Selling, general and administrative expenses 3,624.6 3,296.3 3,034.0 Other (income) expense, net 1,100.3 (20.0) 18.0 ------------------------------------------------------------------------------ Operating profit 2,122.1 2,166.0 2,013.1 Interest expense, net 119.7 124.1 142.8 ------------------------------------------------------------------------------ Income before income taxes 2,102.4 1,980.9 1,870.3 Provision for income taxes 680.3 620.6 582.0 ------------------------------------------------------------------------------ Net income $1,720.1 $1,421.3 $1,190.3 ------------------------------------------------------------------------------